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Jason Shepherd is the main protagonist of the 2002 comedy Big Fat Liar. He is a 14 year old high schooler who who lies all the time to everyone. Then a greedy movie producer Marty Wolf teals his creative writing essay to use it as the basis for his next blockbuster and no-one will believe Jason when he explains what happened. Jason decides that the only way to prove his case is to sneak off to L.A. with his best friend Kaylee to squeeze the truth out of Wolf and confess and prove his truthfulness to his parents.
Jason Shepherd is a 14-year-old compulsive liar. He tries to get out of his creative writing essay by making up a lie but gets caught by his English teacher Phyllis Caldwell, who alerts his parents. He is given three hours to submit his essay, otherwise, he will fail English and go to summer school. Jason writes a story titled 'Big Fat Liar', based on the lies he has told throughout his life. On his way to turn it in, he is struck by the limousine of Hollywood producer Marty Wolf, who gives him a ride. Along the way, Wolf reveals that he also tells lies and that, "The truth is overrated." In a rush, Jason accidentally leaves his essay in the limo. Wolf is inspired by the story when he reads it and decides to keep it for himself. Jason realizes his essay is missing and explains what happened, but his parents and Caldwell do not believe him, and he is sent to summer school to repeat English.
Later, he and his best friend Kaylee see a preview for a film produced by Marty Wolf Pictures titled Big Fat Liar and recognize that it had been plagiarized from Jason's essay. Determined to convince his parents he was being truthful after having lost their trust, Jason and Kaylee fly to Los Angeles to confront Wolf while their parents are out of town.
Upon arrival, they trick limo driver and struggling actor Frank Jackson into giving them a ride to the Wolf Pictures studio. Jason sneaks into Wolf’s office, hoping to convince him to tell his parents what really happened. Instead, Wolf purposefully burns the essay and has Jason and Kaylee thrown out. Angered, the two decide to inconvenience him until he confesses.
As Jason and Kayle board the limo they arrived to LA in, the driver Frank Jackson is furious at them, because Jason caused him to miss the person he was actually supposed to chauffeur. When Jason mentions he is trying to get back at Wolf, Frank's anger is quickly replaced with eagerness and he reveals to the kids that he was once a struggling rising star who auditioned for one of Wolf's films. Rather than just a simple "no", Wolf fired him, vandalize Frank's headshot, and faxed it to every casting agent in Hollywood, torpedoing Frank's career before it even got off ground. Frank tells Jason and Kaylee he's more than willing to help them get back at Wolf.
After gathering information about Wolf’s cruel and abusive treatment of his employees, Jason and Kaylee begin to sabotage him through various pranks, such as dyeing his skin blue and hair orange, super gluing his headset, sending him to a child's birthday party (the same one Wolf rudely refused to let his elderly stuntman Vince take his granddaughter to), where he is mistaken for the hired clown, and modifying the controls to his car.
These pranks and his car being destroyed by Masher make Wolf miss his appointment with his boss, Universal Pictures president Marcus Duncan. After Whitaker and Fowl proves to be a commercial failure, Duncan threatens to pull production for Big Fat Liar. Jason approaches Wolf and agrees to help in exchange for his confession. Guided by Jason, Wolf makes a successful presentation which gets the film approved, but Duncan warns Wolf any mistakes will make Universal pull funding and end his career. Wolf goes back on his word and calls security to remove Jason and Kaylee. Wolf’s assistant Monty Kirkham decides to help Jason and Kaylee expose him, having grown tired of his repeated verbal abuse. They rally all of his employees and devise a plan to finally stop him, while Jason has his parents fly to Los Angeles.
The next morning, as Wolf heads to the studio to begin shooting, many of his employees cause him to be late through multiple mishaps. As Wolf finally arrives at the studio, he witnesses Jason kidnapping his stuffed monkey toy. After a chase across the studio, Wolf catches Jason and retrieves his toy. He mocks Jason and tells him he will never reveal the truth to anyone while admitting that he stole Jason's paper and turned it into a movie. The entire conversation is revealed to have been caught on camera and is witnessed by many people, including Jason's parents and the news media. Disgusted by his plagiarism and dishonesty, Duncan fires Wolf. Jason thanks Wolf for teaching him the importance of truth-telling, and he regains his parents' trust. Enraged, Wolf lunges at Jason, but he quickly escapes and jumps off the roof and lands safely on a stunt mattress. Jason and his parents reconcile, finally believing he was telling the truth. The crowd then leaves, leaving Wolf in disgrace.
Universal produces Big Fat Liar, utilizing the talents and skills of people whom Wolf had abused. It becomes a critical success, with Jason receiving full credit for writing the original story, pleasing Jason's parents and Caldwell.
As for Wolf, he begins his new job as a birthday clown where the birthday boy Darren-(aka "Lil' Mash") is Masher's son much to his dismay. The birthday kid then delivers a flying kick to Wolf’s groin, and he grimices in pain just before the end credits roll.
"Yeah, from my backpack you loser!"
"See it? I think I wrote it."
"So you admit you stole my story."
"We're dealing with the meanest man alive."
"Because the truth's overrated, right?"
"The truth is not overrated."